Lee’s Summit Business Owner Indicted for CARES Act Fraud Scheme
A Lee’s Summit, Missouri business owner, Sammy Adam Joseph, has been indicted by a federal grand jury for spending over $900,000 in federal COVID-19 business relief funds on personal real estate purchases and a Chevrolet Camaro.
Charges and Indictment Details
Joseph, 47, was charged in an eight-count indictment returned under seal by a federal grand jury in Kansas City, Missouri, on November 8th. The indictment was unsealed and made public upon Joseph’s arrest and initial court appearance. He remains in federal custody pending a detention hearing, which has not yet been scheduled.
Flight Risk and Community Risk Factors
According to the government’s motion for detention, Joseph is considered a flight risk due to owning a condominium in Lebanon and having traveled to Lebanon three times in 2023. Additionally, he poses a risk to the community as he has been identified in social media photos with assault weapons.
Business Details and EIDL Program
Joseph is the owner of Adams & Joseph, Inc., which operates two gas stations in the Kansas City, Missouri metropolitan area. His business received nearly $1.9 million under the Economic Injury Disaster Loan (EIDL) program, which was part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act was designed to provide emergency financial assistance due to the economic impact caused by the COVID-19 pandemic.
The indictment alleges that Joseph fraudulently used at least $900,000 of the EIDL proceeds for his own personal benefit, purchasing a residence in Lee’s Summit, parcels of land in Kansas City and Lee’s Summit, a building in Grandview, Missouri, and a blue 2019 Chevrolet Camaro. He is charged with six counts of theft of government property, which are related to the unauthorized use of EIDL proceeds, and two counts of money laundering, related to the transactions of criminally derived property.
The indictment also contains forfeiture allegations, which would require Joseph to forfeit to the government any property derived from the proceeds of the alleged offenses, including a money judgment of at least $948,120 and three parcels of real estate in Kansas City, Lee’s Summit, and Grandview.
Case Prosecution and Investigation
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker and investigated by Homeland Security Investigations. The Pandemic Response Accountability Committee Task Force, established to promote transparency and facilitate coordinated oversight of the federal government’s COVID-19 pandemic response, also supported this case. The Task Force’s 20 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in over $5 trillion in COVID-19 spending, including spending via the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
Orginal article: Link To Article – provided by Kansas City Realtors